EMPLOYMENT AGREEMENT DATED AS OF JUNE 11, 2007 BETWEEN NIRMAL TRIPATHY AND THE TJX COMPANIES, INC.
Exhibit 10.1
DATED AS OF JUNE 11, 2007
BETWEEN XXXXXX XXXXXXXX AND THE TJX COMPANIES, INC.
INDEX
| PAGE | ||||
1. EFFECTIVE DATE, TERM OF AGREEMENT |
1 | |||
2. SCOPE OF EMPLOYMENT |
1 | |||
3. COMPENSATION AND BENEFITS |
2 | |||
4. TERMINATION OF EMPLOYMENT; IN GENERAL |
4 | |||
5. BENEFITS UPON NON-VOLUNTARY TERMINATION OF EMPLOYMENT OR UPON EXPIRATION OF THE AGREEMENT |
4 | |||
6. OTHER TERMINATION |
6 | |||
7. BENEFITS UPON CHANGE IN CONTROL |
7 | |||
8. AGREEMENT NOT TO SOLICIT OR COMPETE |
7 | |||
9. REPRESENTATION BY EXECUTIVE |
10 | |||
10. ASSIGNMENT |
10 | |||
11. NOTICES |
11 | |||
12. WITHHOLDING; CERTAIN TAX MATTERS |
11 | |||
13. GOVERNING LAW |
11 | |||
14. ABRITATION |
11 | |||
15. ENTIRE AGREEMENT |
11 | |||
EXHIBIT A Certain Definitions |
A-1 | |||
EXHIBIT B Definition of “Change of Control” |
B-1 | |||
EXHIBIT C Change of Control Benefits |
C-1 | |||
SCHEDULE I Competitive Businesses |
D-1 | |||
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XXXXXX XXXXXXXX
AGREEMENT dated as of June 11, 2007 between Xxxxxx Xxxxxxxx (“Executive”) and The TJX
Companies, Inc., a Delaware corporation whose principal office is in Xxxxxxxxxx, Xxxxxxxxxxxxx
00000(xxx “Company”).
RECITALS
The Company and Executive intend that Executive shall be employed by the Company on the terms
set forth below and, to that end, deem it desirable and appropriate to enter into this Agreement.
AGREEMENT
The parties hereto, in consideration of the mutual agreements hereinafter contained, agree as
follows:
1. EFFECTIVE DATE; TERM OF AGREEMENT. Executive’s employment with the Company shall commence
effective as of June 11, 2007 (the “Effective Date”). Executive’s employment hereunder shall
continue on the terms provided herein until June 11, 2010 (the “End Date”), subject to earlier
termination as provided herein. The period of Executive’s employment by the Company from and after
the Effective Date, whether under this Agreement or otherwise, is referred to in this Agreement as
the “Employment Period,” it being understood that nothing in this Agreement shall be construed as
entitling Executive to continuation of his employment beyond the End Date and that any such
continuation shall be subject to the agreement of the parties.
2. SCOPE OF EMPLOYMENT.
(a) Nature of Services. Executive shall diligently perform such duties and assume
such responsibilities as shall from time to time be specified by the Company.
(b) Extent of Services. Except for illnesses and vacation periods, Executive shall
devote substantially all his working time and attention and his best efforts to the performance of
his duties and responsibilities under this Agreement. However, Executive may (i) make any passive
investments where he is not obligated or required to, and shall not in fact, devote any managerial
efforts, (ii) subject to approval by the Company (which approval shall not be unreasonably withheld
or withdrawn), participate in charitable or community activities or in trade or professional
organizations, or (iii) subject to approval by the Company (which approval shall not be
unreasonably withheld or withdrawn), hold directorships in public companies, except only that the
Company shall have the right to limit such services as a director or such participation in
charitable or community activities or in trade or professional organizations whenever the
Company shall believe that the time spent on such activities infringes in any material respect
upon the time required by Executive for the performance of his duties under this Agreement or is
otherwise incompatible with those duties.
3. COMPENSATION AND BENEFITS.
(a) Base Salary. Executive shall be paid a base salary at the rate hereinafter
specified, such Base Salary to be paid in the same manner and at the same times as the Company
shall pay base salary to other executive employees. The rate at which Executive’s Base Salary
shall be paid shall be $625,000 per year or such other rate (not less than $625,000 per year) as
the Committee may determine after Committee review not less frequently than annually.
(b) Sign-On Bonus. Within thirty (30) days of the Effective Date, if Executive is
then still employed by the Company, the Company shall pay to Executive a sign-on cash bonus of
$100,000. Executive hereby agrees to repay the aforesaid sign-on bonus to the Company in full if,
within the one-year period following the Effective Date, either Executive terminates his employment
with the Company or the Company terminates Executive’s employment for Cause.
(c) New Stock Awards. Consistent with the terms of the Company’s Stock Incentive Plan
(including any successor, the “Stock Incentive Plan”), during the Employment Period, Executive will
be entitled to stock-based awards under the Stock Incentive Plan at levels commensurate with his
position and responsibilities and subject to such terms as shall be established by the Committee.
Without limiting the generality of the foregoing:
(i) Effective as of Executive’s commencement of employment on the Effective Date, the
Committee has awarded to Executive two grants of performance-based restricted stock under
the Stock Incentive Plan, as follows: (A) an award of 12,000 shares of Stock, or such
greater or lesser number of shares as is determined by applying the Company’s standard
indexing methodology to 12,000 based on the fair market value of the Stock on the Effective
Date, such shares to vest in full on September 6, 2010 if Executive is then still employed
by the Company and if the Company has previously certified achievement of a performance
level in respect of the performance targets established under the Company Long Range
Performance Incentive Plan (“LRPIP”) for the FYE ‘08-FYE ‘10 cycle at a level of at least
67% of target, with prorated vesting for performance below the 67% level but at or above the
level at which some LRPIP award would be payable and no vesting if performance is below that
level; and (B) an award of 25,000 shares of Stock to vest as follows: (I) 8,333 shares to
vest on the date in calendar 2008 on which the Committee certifies achievement of
performance in respect of the performance target established under the Company’s Management
Incentive Plan (“MIP”) for corporate officers for FYE ‘08, if Executive is then still
employed by the Company and if the Company has achieved at least 67% of target performance
for such year, with prorated vesting for performance below the 67% level but at or above the
level at which some MIP award would be payable and no vesting if performance is below that
level; and (II) 16,667 shares to vest on the date in calendar 2009 on which the Committee
certifies achievement of performance in respect of the performance target established under
MIP for corporate officers for FYE ‘09, if Executive is then still employed by the Company
and if the Company has achieved at least 67% of target performance for such year, with
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prorated vesting for performance below the 67% level but at or above the level at which
some MIP award would be payable and no vesting if performance is below that level.
(ii) At the same time in calendar 2007 as the Company makes stock options grants to
other officers and employees, it shall be recommended to the Committee that it award
Executive a stock option covering 37,500 shares of Stock, or such greater or lesser number
of shares as is determined by applying the Company’s standard indexing methodology to 37,500
based on the fair market value of the Stock on the date of grant and with an exercise price
equal to the fair market value of the Stock on the date of grant.
(d) LRPIP. During the Employment Period, starting with the FYE ‘09-FYE ‘11 award
cycle, Executive will be eligible to participate in awards under LRPIP at a level commensurate with
his position and responsibilities and subject to such terms as shall be established by the
Committee. For the FYE ‘08-FYE ‘10 cycle, contingent upon Executive’s commencement of employment
hereunder, the Committee has awarded Executive an LRPIP opportunity with a target award opportunity
equal to $300,000 and a maximum award opportunity of $450,000. In addition, contingent upon
Executive’s commencement of employment hereunder, the Committee has awarded Executive a special
one-time LRPIP opportunity for the two-year cycle FYE ‘08-FYE ‘09. Executive’s target opportunity
for this special, one-time LRPIP award is $300,000 and his maximum opportunity is $450,000.
(e) MIP. During the Employment Period, starting with FYE ‘09, Executive will be
eligible to participate in awards under the Company’s Management Incentive Plan (“MIP”) at a level
commensurate with his position and responsibilities and subject to such terms as shall be
established by the Committee. For FYE ‘08, contingent upon Executive’s commencement of employment
hereunder, the Committee has awarded Executive (i) a MIP with a target opportunity of 45% of actual
Base Salary; provided, that if Executive remains employed through the last day of FYE ‘08 he shall
receive in respect of such MIP award not less than $281,250; and (ii) a one-time supplemental MIP
with a target opportunity of $300,000; provided, that if Executive remains employed through the
last day of FYE ‘08 he shall receive in respect of such supplemental MIP award not less than
$300,000.
(f) Qualified Plans; Other Deferred Compensation Plans. Executive shall be entitled
during the Employment Period to participate in the Company’s tax-qualified retirement and
profit-sharing plans, and in the GDCP and ESP, in each case in accordance with the terms of the
applicable plan (including, for the avoidance of doubt and without limitation, the amendment and
termination provisions thereof).
(g) Policies and Fringe Benefits. Executive shall be subject to Company policies
applicable to its executives generally and shall be entitled to receive all such fringe benefits as
the Company shall from time to time make available to other executives generally (subject to the
terms of any applicable fringe benefit plan). Without limiting the generality of the foregoing,
Executive shall be entitled to relocation benefits consistent with the Company’s customary
practices.
(h) Other. The Company is entitled to terminate Executive’s employment
notwithstanding the fact that Executive may lose entitlement to benefits under the arrangements
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described above. Upon termination of his employment, Executive shall have no claim against
the Company or Parent for loss arising out of ineligibility to exercise any stock options granted
to him or otherwise in relation to any of the stock options or other stock-based awards granted to
Executive, and the rights of Executive shall be determined solely by the rules of the relevant
award document and plan.
4. TERMINATION OF EMPLOYMENT; IN GENERAL.
(a) The Company shall have the right to end Executive’s employment at any time and for any
reason, with or without Cause.
(b) To the extent consistent with applicable law, Executive’s employment shall terminate when
Executive becomes Disabled. In addition, if by reason of Incapacity Executive is unable to perform
his duties for at least six continuous months, upon written notice by the Company to Executive, and
to the extent consistent with applicable law, the Employment Period will be terminated for
Incapacity.
(c) Whenever his employment shall terminate, Executive shall resign all offices or other
positions he shall hold with the Company and any affiliated corporations. For the avoidance of
doubt, the Employment Period shall terminate upon termination of Executive’s employment for any
reason.
5. BENEFITS UPON NON-VOLUNTARY TERMINATION OF EMPLOYMENT OR UPON EXPIRATION OF THE AGREEMENT.
(a) Certain Terminations Prior to the End Date. If the Employment Period shall have
terminated prior to the End Date by reason of (i) death, Disability or Incapacity of Executive,
(ii) termination by the Company for any reason other than Cause or (iii) termination by Executive
in the event that Executive is relocated more than forty (40) miles from the current corporate
headquarters of the Company without his prior written consent (a “Constructive Termination”), then
all compensation and benefits for Executive shall be as follows:
(i) For a period of twelve (12) months after the Date of Termination (the “termination
period”), the Company will pay to Executive or his legal representative, without reduction
for compensation earned from other employment or self employment, continued Base Salary at
the rate in effect at termination of employment; provided, that if Executive is eligible for
long-term disability compensation benefits under the Company’s long-term disability plan,
the amount payable under this clause shall be paid at a rate equal to the excess of (a) the
rate of Base Salary in effect at termination of employment, over (b) the long-term
disability compensation benefits for which Executive is approved under such plan.
(ii) If Executive elects so-called “COBRA” continuation of group health plan coverage
provided pursuant to Part 6 of Subtitle B of Title I of the Employee Retirement Income
Security Act of 1974, as amended, there shall be added to the amounts otherwise payable
under Section 5(a)(i) above, during the continuation of such coverage, an amount (grossed up
for federal and state income taxes) equal to the participant cost of such coverage, except
to the extent that Executive shall obtain no less favorable coverage from
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another employer or from self-employment in which case such additional payments shall
cease immediately.
(iii) The Company will pay to Executive or his legal representative, without offset for
compensation earned from other employment or self-employment, (A) any unpaid amounts to
which Executive is entitled under MIP for the fiscal year of the Company ended immediately
prior to Executive’s termination of employment, plus (B) any unpaid amounts owing with
respect to LRPIP cycles in which Executive participated and which were completed prior to
termination. These amounts will be paid at the same time as other awards for such prior
year or cycle are paid.
(iv) The Company will pay to Executive or his legal representative, without offset for
compensation earned from other employment or self-employment, an amount equal to the sum of
(A) Executive’s MIP Target Award, if any, for the year of termination, multiplied by a
fraction, the numerator of which is three hundred and sixty-five (365) plus the number of
days during such year prior to termination, and the denominator of which is seven hundred
and thirty (730) (provided, however, that if the Employment Period shall have terminated by
reason of Executive’s death, Disability or Incapacity, this clause (A) shall not apply and
Executive instead shall be entitled to the MIP benefit described in Section 5(a)(vii)
below), plus (B) with respect to each LRPIP cycle in which Executive participated and which
had not ended prior to termination of employment, an amount equal to Executive’s LRPIP
Target Award for such cycle multiplied by a fraction, the numerator of which is the number
of full months in such cycle completed prior to termination of employment and the
denominator of which is the number of full months in such cycle. The amount described in
Section 5(a)(iv)(A) above, if any, will be paid not later than MIP awards for the year of
termination are paid. The amount described in Section 5(a)(iv)(B) above, to the extent
measured by the LRPIP Target Award for any cycle, will be paid not later than the date on
which LRPIP awards for such cycle are paid or would have been paid.
(v) In addition, Executive or his legal representative shall be entitled to the Stock
Incentive Plan benefits described in Section 3(b) (Existing Awards) and Section 3(c) (New
Stock Awards), in each case in accordance with and subject to the terms of the applicable
arrangement, and to payment of his vested benefits, if any, under the plans described in
Section 3(f) (Qualified Plans; Other Deferred Compensation Plans).
(vi) If termination occurs by reason of Incapacity or Disability, Executive shall also
be entitled to such compensation, if any, as is payable pursuant to the Company’s long-term
disability plan. If for any period Executive receives long-term disability compensation
payments under a long-term disability plan of the Company as well as payments under Section
5(a)(i) above, and if the sum of such payments (the “combined salary/disability benefit”)
exceeds the payment for such period to which Executive is entitled under Section 5(a)(i)
above (determined without regard to the proviso set forth therein), he shall promptly pay
such excess in reimbursement to the Company; provided, that in no event shall application of
this sentence result in reduction of Executive’s combined salary/disability benefit below
the level of long-term disability compensation
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payments to which Executive is entitled under the long-term disability plan or plans of
the Company.
(vii) If termination occurs by reason of death, Incapacity or Disability, Executive
shall also be entitled to an amount equal to Executive’s MIP Target Award for the year of
termination, without proration. This amount will be paid not later than MIP awards for the
year of termination are paid.
(viii) Except as expressly set forth above or as required by law, Executive shall not
be entitled to continue participation during the termination period in any employee benefit
or fringe benefit plans, except for continuation of any automobile allowance.
(b) Termination on the End Date. Unless earlier terminated or except as otherwise
mutually agreed by Executive and the Company, Executive’s employment with the Company shall
terminate on the End Date. Unless the Company in connection with such termination shall offer to
Executive continued service in a position on reasonable terms, Executive shall be treated as having
terminated under Section 5(a) on the day immediately preceding the End Date and shall be entitled
to the pay and benefits described therein. In addition, in such event, Executive shall be relieved
of the requirement under Section 3(c)(i)(A) (with respect to the restricted Stock award described
in such Section 3(c)(i)(A)) that he continue in employment until September 6, 2010 (but all the
other requirements of such award shall remain operative). If the Company in connection with such
termination offers to Executive continued service in a position on reasonable terms, and Executive
declines such service, he shall be treated for all purposes of this Agreement as having terminated
his employment voluntarily on the End Date and he shall be entitled only to those benefits to which
he would be entitled under Section 6(a) (“Voluntary termination of employment”). For purposes of
the two preceding sentences, “service in a position on reasonable terms” shall mean service in a
position comparable to the position in which Executive was serving immediately prior to the End
Date, as reasonably determined by the Committee.
6. OTHER TERMINATION.
(a) Voluntary termination of employment. If Executive terminates his employment
voluntarily, Executive or his legal representative shall be entitled (in each case in accordance
with and subject to the terms of the applicable arrangement) to any Stock Incentive Plan benefits
described in Section 3(b) (Existing Awards) or Section 3(c) (New Stock Awards) and to any vested
benefits under the plans described in Section 3(f) (Qualified Plans; Other Deferred Compensation
Plans). In addition, the Company will pay to Executive or his legal representative any unpaid
amounts to which Executive is entitled under MIP for the fiscal year of the Company ended
immediately prior to Executive’s termination of employment, plus any unpaid amounts owing with
respect to LRPIP cycles in which Executive participated and which were completed prior to
termination, in each case at the same time as other awards for such prior year or cycle are paid.
No other benefits shall be paid under this Agreement upon a voluntary termination of employment.
(b) Termination for Cause. If the Company should end Executive’s employment for Cause
all compensation and benefits otherwise payable pursuant to this Agreement shall cease,
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other than (x) such vested amounts as are credited to Executive’s account (but not received)
under GDCP and ESP in accordance with the terms of those programs; (y) any vested benefits to which
Executive is entitled by law under the Company’s tax-qualified plans; and (z) Stock Incentive Plan
Benefits, if any, to which Executive may be entitled (in each case in accordance with and subject
to the terms of the applicable arrangement) under Sections 3(b) (Existing Awards) and 3(c) (New
Stock Awards).
7. BENEFITS UPON CHANGE OF CONTROL. Notwithstanding any other provision of this Agreement, in
the event of a Change of Control, the determination and payment of any benefits payable thereafter
with respect to Executive shall be governed exclusively by the provisions of Exhibit C.
8. AGREEMENT NOT TO SOLICIT OR COMPETE
(a) During the Employment Period and for a period of twenty-four (24) months thereafter (the
“Nonsolicitation Period”), Executive shall not, and shall not direct any other individual or entity
to, directly or indirectly (including as a partner, shareholder, joint venturer or other investor)
(i) hire, offer to hire, attempt to hire or assist in the hiring of, any protected person as an
employee, director, consultant, advisor or other service provider, (ii) recommend any protected
person for employment or other engagement with any person or entity other than the Company and its
Subsidiaries, (iii) solicit for employment or other engagement any protected person, or seek to
persuade, induce or encourage any protected person to discontinue employment or engagement with the
Company or its Subsidiaries, or recommend to any protected person any employment or engagement
other than with the Company or its Subsidiaries, (iv) accept services of any sort (whether for
compensation or otherwise) from any protected person, or (v) participate with any other person or
entity in any of the foregoing activities. Any individual or entity to which Executive provides
services (as an employee, director, consultant, advisor or otherwise) or in which Executive is a
shareholder, member, partner, joint venturer or investor, excluding interests in the common stock
of any publicly traded corporation of one percent (1%) or less), and any individual or entity that
is affiliated with any such individual or entity, shall, for purposes of the preceding sentence, be
irrebuttably presumed to have acted at the direction of Executive with respect to any “protected
person” who worked with Executive at any time during the six (6) months prior to termination of the
Employment Period. A “protected person” is a person who at the time of termination of the
Employment Period, or within six (6) months prior thereto, is or was employed by the Company or any
of its Subsidiaries either in a position of Assistant Vice President or higher, or in a salaried
position in any merchandising group. As to (I) each “protected person” to whom the foregoing
applies, (II) each subcategory of “protected person,” as defined above, (III) each limitation on
(A) employment or other engagement, (B) solicitation and (C) unsolicited acceptance of services, of
each “protected person” and (IV) each month of the period during which the provisions of this
subsection (a) apply to each of the foregoing, the provisions set forth in this subsection (a)
shall be deemed to be separate and independent agreements. In the event of unenforceability of any
one or more such agreement(s), such unenforceable agreement(s) shall be deemed automatically
reformed in order to allow for the greatest degree of enforceability authorized by law or, if no
such reformation is possible, deleted from the provisions hereof entirely, and such reformation or
deletion shall not affect the enforceability of any other provision of this subsection (a) or any
other term of this Agreement.
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(b) During the course of his employment, Executive will have learned vital trade secrets of
the Company and its Subsidiaries and will have access to confidential and proprietary information
and business plans of the Company and its Subsidiaries. Therefore, during the Employment Period
and for a period of twelve (12) months thereafter (the “Noncompetition Period”), Executive will
not, directly or indirectly, be a shareholder, member, partner, joint venturer or investor
(disregarding in this connection passive ownership for investment purposes of common stock
representing one percent (1%) or less of the voting power or value of any publicly traded
corporation) in, serve as a director or manager of, be engaged in any employment, consulting, or
fees-for-services relationship or arrangement with, or advise with respect to the organization or
conduct of, or any investment in, any “competitive business” as hereinafter defined or any Person
that engages in any “competitive business” as hereinafter defined, nor shall Executive undertake
any planning to engage in any such activities. The term “competitive business” (i) shall mean any
business (however organized or conducted) that competes with a business in which the Company or any
of its Subsidiaries was engaged, or in which the Company or any Subsidiary was planning to engage,
at any time during the 12-month period immediately preceding the date on which the Employment
Period ends, and (ii) shall conclusively be presumed to include, but shall not be limited to, (A)
any business specified on Schedule I to this Agreement, and (B) any other off-price, promotional,
or warehouse-club-type retail business, however organized or conducted, that sells apparel,
footwear, home fashions, home furnishings, jewelry, accessories, or any other category of
merchandise sold by the Company or any of its Subsidiaries at the termination of the Employment
Period. For purposes of this subsection (b), a “Person” means an individual, a corporation, a
limited liability company, an association, a partnership, an estate, a trust and any other entity
or organization, other than the Company or its Subsidiaries, and reference to any Person (the
“first Person”) shall be deemed to include any other Person that controls, is controlled by or is
under common control with the first Person. If, at any time, pursuant to action of any court,
administrative, arbitral or governmental body or other tribunal, the operation of any part of this
subsection shall be determined to be unlawful or otherwise unenforceable, then the coverage of this
subsection shall be deemed to be reformed and restricted as to substantive reach, duration,
geographic scope or otherwise, as the case may be, to the extent, and only to the extent, necessary
to make this paragraph lawful and enforceable to the greatest extent possible in the particular
jurisdiction in which such determination is made.
(c) Executive shall never use or disclose any confidential or proprietary information of the
Company or its Subsidiaries other than as required by applicable law or during the Employment
Period for the proper performance of Executive’s duties and responsibilities to the Company and its
Subsidiaries. This restriction shall continue to apply after Executive’s employment terminates,
regardless of the reason for such termination. All documents, records and files, in any media,
relating to the business, present or otherwise, of the Company and its Subsidiaries and any copies
(“Documents”), whether or not prepared by Executive, are the exclusive property of the Company and
its Subsidiaries. Executive must diligently safeguard all Documents, and must surrender to the
Company at such time or times as the Company may specify all Documents then in Executive’s
possession or control. In addition, upon termination of employment for any reason other than the
death of Executive, Executive shall immediately return all Documents, and shall execute a
certificate representing and warranting that he has returned all such Documents in Executive’s
possession or under his control.
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(d) If, during the Employment Period or at any time following termination of the Employment
Period, regardless of the reason for such termination, Executive breaches any provision of this
Section 8, the Company’s obligation, if any, to pay benefits under Section 5 hereof shall forthwith
cease and Executive shall immediately forfeit and disgorge to the Company, with interest at the
prime rate in effect at Bank of America, or its successor, all of the following: (i) any benefits
theretofore paid to Executive under Section 5; (ii) any unexercised stock options and stock
appreciation rights held by Executive; (iii) if any other stock-based award vested in connection
with termination of the Employment Period, whether occurring prior to, simultaneously with, or
following such breach, or subsequent to such breach and prior to termination of the Employment
Period, the value of such stock-based award at time of vesting plus any additional gain realized on
a subsequent sale or disposition of the award or the underlying stock; and (iv) in respect of each
stock option or stock appreciation right exercised by Executive within six (6) months prior to any
such breach or subsequent thereto and prior to the forfeiture and disgorgement required by this
Section 8(d), the excess over the exercise price (or base value, in the case of a stock
appreciation right) of the greater of (A) the fair market value at time of exercise of the shares
of stock subject to the award, or (B) the number of shares of stock subject to such award
multiplied by the per-share proceeds of any sale of such stock by Executive.
(e) Executive shall notify the Company immediately upon securing employment or becoming
self-employed at any time within the Noncompetition Period, and shall provide to the Company such
details concerning such employment or self-employment as it may reasonably request in order to
ensure compliance with the terms hereof.
(f) Executive hereby advises the Company that Executive has carefully read and considered all
the terms and conditions of this Agreement, including the restraints imposed on Executive under
this Section 8, and agrees without reservation that each of the restraints contained herein is
necessary for the reasonable and proper protection of the good will, confidential information and
other legitimate business interests of the Company and its Subsidiaries, that each and every one of
those restraints is reasonable in respect to subject matter, length of time and geographic
area; and that these restraints will not prevent Executive from obtaining other suitable
employment during the period in which Executive is bound by them. Executive agrees that Executive
will never assert, or permit to be asserted on his behalf, in any forum, any position contrary to
the foregoing. Executive also acknowledges and agrees that, were Executive to breach any of the
provisions of this Section 8, the harm to the Company and its Subsidiaries would be irreparable.
Executive therefore agrees that, in the event of such a breach or threatened breach, the Company
shall, in addition to any other remedies available to it, have the right to obtain preliminary and
permanent injunctive relief against any such breach or threatened breach without having to post
bond, and will additionally be entitled to an award of attorney’s fees incurred in connection with
enforcing its rights hereunder. Executive further agrees that, in the event that any provision of
this Agreement shall be determined by any court of competent jurisdiction to be unenforceable by
reason of its being extended over too great a time, too large a geographic area or too great a
range of activities, such provision shall be deemed to be modified to permit its enforcement to the
maximum extent permitted by law. Finally, Executive agrees that the Noncompetition Period and the
Nonsolicitation Period shall be tolled, and shall not run, during any period of time in which
Executive is in violation of any of the terms
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of this Section 8, in order that the Company shall have the agreed-upon temporal protection
recited herein.
(g) Executive agrees that if any of the restrictions in this Section 8 is held to be void or
ineffective for any reason but would be held to be valid and effective if part of its wording were
deleted, that restriction shall apply with such deletions as may be necessary to make it valid and
effective. Executive further agrees that the restrictions contained in each subsection of this
Section 8 shall be construed as separate and individual restrictions and shall each be capable of
being severed without prejudice to the other restrictions or to the remaining provisions.
(h) Executive expressly consents to be bound by the provisions of this Agreement for the
benefit of the Company and its Subsidiaries, and any successor or permitted assign to whose employ
Executive may be transferred, without the necessity that this Agreement be re-signed at the time of
such transfer. Executive further agrees that no changes in the nature or scope of his employment
with the Company will operate to extinguish the terms and conditions set forth in Section 8, or
otherwise require the parties to re-sign this Agreement
(i) The provisions of this Section 8 shall survive the termination of the Employment Period
and the termination of this Agreement, regardless of the reason or reasons therefor, and shall be
binding on Executive regardless of any breach by the Company of any other provision of this
Agreement.
9. REPRESENTATION BY EXECUTIVE. Executive hereby represents that his employment by the
Company, his provision of services to the Company and its Subsidiaries and his performance of his
duties under this Agreement will not breach or be in conflict with any other agreement to which he
is a party or by which he is bound and that he is not now subject to any covenants against
competition or similar covenants or other obligations to third parties or to any court order,
judgment or decree that would affect the performance of his obligations hereunder or of his duties
and responsibilities to the Company and its Subsidiaries. Executive further agrees that he will
not copy or take any confidential or proprietary information belonging to his prior employer or any
affiliate thereof, will not use or disclose any such information in the course of his employment by
the Company and its Subsidiaries, and will not otherwise engage in any conduct or action that would
violate his obligations under any existing trade-secret or confidential information undertaking by
which he is bound.
10. ASSIGNMENT. The rights and obligations of the Company shall enure to the benefit of and
shall be binding upon the successors and assigns of the Company. The rights and obligations of
Executive are not assignable except only that stock issuable, awards and payments payable to him
after his death shall be made to his estate except as otherwise provided by the applicable plan or
award documentation, if any.
11. NOTICES. All notices and other communications required hereunder shall be in writing and
shall be given by mailing the same by certified or registered mail, return receipt requested,
postage prepaid. If sent to the Company the same shall be mailed to the Company at 000 Xxxxxxxxxx
Xxxx, Xxxxxxxxxx, Xxxxxxxxxxxxx 00000, Attention: Chairman of the Executive Compensation
Committee, or other such address as the Company may hereafter designate by notice to Executive; and
if sent to Executive, the same shall be mailed to Executive at his address
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as set forth in the records of the Company or at such other address as Executive may hereafter
designate by notice to the Company.
12. WITHHOLDING; CERTAIN TAX MATTERS. Anything to the contrary notwithstanding, (a) all
payments required to be made by the Company hereunder to Executive shall be subject to the
withholding of such amounts, if any, relating to tax and other payroll deductions as the Company
may reasonably determine it should withhold pursuant to any applicable law or regulation, and (b)
to the extent any payment hereunder shall be required to be delayed until six months following
separation from service to comply with the “specified employee” rules of Section 409A it shall be
so delayed (but not more than is required to comply with such rules).
13. GOVERNING LAW. This Agreement and the rights and obligations of the parties hereunder
shall be governed by the laws of the Commonwealth of Massachusetts.
14. ARBITRATION. In the event that there is any claim or dispute arising out of or relating
to this Agreement, or the breach thereof, and the parties hereto shall not have resolved such claim
or dispute within sixty (60) days after written notice from one party to the other setting forth
the nature of such claim or dispute, then such claim or dispute shall be settled exclusively by
binding arbitration in Boston, Massachusetts in accordance with the Rules Governing Resolutions of
Employment Disputes of the American Arbitration Association by an arbitrator mutually agreed upon
by the parties hereto or, in the absence of such agreement, by an arbitrator selected according to
such Rules. Notwithstanding the foregoing, if either the Company or Executive shall request, such
arbitration shall be conducted by a panel of three arbitrators, one selected by the Company, one
selected by Executive and the third selected by agreement of the first two, or, in the absence of
such agreement, in accordance with such Rules. Judgment upon the award rendered by such
arbitrator(s) shall be entered in any Court having jurisdiction thereof upon the application of
either party.
15. ENTIRE AGREEMENT. This Agreement, including Exhibits, represents the entire agreement
between the parties relating to the terms of Executive’s employment by the Company and supersedes
all prior written or oral agreements between them except to the extent provided herein.
| /s/ Xxxxxx Xxxxxxxx | ||||
| Executive | ||||
| THE TJX COMPANIES, INC. | ||||
| By: | /s/ Xxxxx Xxxxxxxxx | |||
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EXHIBIT A
Certain Definitions
(a) “Base Salary” means, for any period, the amount described in Section 3(a).
(b) “Board” means the Board of Directors of the Company.
(c) “Cause” means dishonesty by Executive in the performance of his duties, conviction of a
felony (other than a conviction arising solely under a statutory provision imposing criminal
liability upon Executive on a per se basis due to the Company offices held by Executive, so long as
any act or omission of Executive with respect to such matter was not taken or omitted in
contravention of any applicable policy or directive of the Board); gross neglect of duties (other
than as a result of Incapacity, Disability or death), or conflict of interest which conflict shall
continue for thirty (30) days after the Company gives written notice to Executive requesting the
cessation of such conflict; or any fact or circumstance other than Incapacity, Disability or death
that prevents Executive from continuing to provide services to the Company.
In respect of any termination during a Standstill Period, Executive shall not be deemed to
have been terminated for Cause until the later to occur of (i) the 30th day after notice of
termination is given and (ii) the delivery to Executive of a copy of a resolution duly adopted by
the affirmative vote of not less than a majority of the Company’s directors at a meeting called and
held for that purpose (after reasonable notice to Executive), and at which Executive together with
his counsel was given an opportunity to be heard, finding that Executive was guilty of conduct
described in the definition of “Cause” above, and specifying the particulars thereof in detail;
provided, however, that the Company may suspend Executive and withhold payment of his Base Salary
from the date that notice of termination is given until the earliest to occur of (A) termination of
Executive for Cause effected in accordance with the foregoing procedures (in which case Executive
shall not be entitled to his Base Salary for such period), (B) a determination by a majority of the
Company’s directors that Executive was not guilty of the conduct described in the definition of
“Cause” effected in accordance with the foregoing procedures (in which case Executive shall be
reinstated and paid any of his previously unpaid Base Salary for such period), or (C) ninety (90)
days after notice of termination is given (in which case Executive shall then be reinstated and
paid any of his previously unpaid Base Salary for such period). If Base Salary is withheld and
then paid pursuant to clause (B) or (C) of the preceding sentence, the amount thereof shall be
accompanied by simple interest, calculated on a daily basis, at a rate per annum equal to the prime
or base lending rate, as in effect at the time, of the Company’s principal commercial bank.
(d) “Change of Control” has the meaning given it in Exhibit B.
(e) “Change of Control Termination” means the termination of Executive’s employment during a
Standstill Period (1) by the Company other than for Cause, or (2) by Executive for good reason, or
(3) by reason of death, Incapacity or Disability.
For purposes of this definition, termination for “good reason” shall mean the voluntary
termination by Executive of his employment (A) within one hundred and twenty (120) days after
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the occurrence without Executive’s express written consent of any one of the events described
in clauses (I), (II), (III), (IV), (V) or (VI) below, provided, that Executive gives notice to the
Company at least thirty (30) days in advance requesting that the pertinent situation described
therein be remedied, and the situation remains unremedied upon expiration of such 30-day period;
(B) within one hundred and twenty (120) days after the occurrence without Executive’s express
written consent of the event described in clause (VII), provided, that Executive gives notice to
the Company at least thirty (30) days in advance of his intent to terminate his employment in
respect of such event; or (C) under the circumstances described in clause (VIII) below, provided,
that Executive gives notice to the Company at least thirty (30) days in advance:
| (I) | the assignment to him of any duties inconsistent with his positions, duties, responsibilities, and status with the Company immediately prior to the Change of Control, or any removal of Executive from or any failure to reelect him to such positions, except in connection with the termination of Executive’s employment by the Company for Cause or by Executive other than for good reason, or any other action by the Company which results in a diminishment in such position, authority, duties or responsibilities, other than an insubstantial and inadvertent action which is remedied by the Company promptly after receipt of notice thereof given by Executive; or | ||
| (II) | if Executive’s rate of Base Salary for any fiscal year is less than 100% of the rate of Base Salary paid to Executive in the completed fiscal year immediately preceding the Change of Control or if Executive’s total cash compensation opportunities, including salary and incentives, for any fiscal year are less than 100% of the total cash compensation opportunities made available to Executive in the completed fiscal year immediately preceding the Change of Control; or | ||
| (III) | the failure of the Company to continue in effect any benefits or perquisites, or any pension, life insurance, medical insurance or disability plan in which Executive was participating immediately prior to the Change of Control unless the Company provides Executive with a plan or plans that provide substantially similar benefits, or the taking of any action by the Company that would adversely affect Executive’s participation in or materially reduce Executive’s benefits under any of such plans or deprive Executive of any material fringe benefit enjoyed by Executive immediately prior to the Change of Control; or | ||
| (IV) | any purported termination of Executive’s employment by the Company for Cause during a Standstill Period which is not effected in compliance with paragraph (d) above; or | ||
| (V) | any relocation of Executive of more than forty (40) miles from the place where Executive was located at the time of the Change of Control; or | ||
| (VI) | any other breach by the Company of any provision of this Agreement; or |
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| (VII) | the Company sells or otherwise disposes of, in one transaction or a series of related transactions, assets or earning power aggregating more than 30% of the assets (taken at asset value as stated on the books of the Company determined in accordance with generally accepted accounting principles consistently applied) or earning power of the Company (on an individual basis) or the Company and its Subsidiaries (on a consolidated basis) to any other Person or Persons (as those terms are defined in Exhibit B); or | ||
| (VIII) | the voluntary termination by Executive of his employment at any time within one year after the Change of Control. Notwithstanding the foregoing, the Board may expressly waive the application of this clause (VIII) if it waives the applicability of substantially similar provisions with respect to all persons with whom the Company has a written severance agreement (or may condition its application on any additional requirements or employee agreements which the Board shall in its discretion deem appropriate in the circumstances). The determination of whether to waive or impose conditions on the application of this clause (VIII) shall be within the complete discretion of the Board but shall be made prior to the Change of Control. |
(f) “Code” means the Internal Revenue Code of 1986, as amended.
(g) “Committee” means the Executive Compensation Committee of the Board.
(h) “Date of Termination” means the date on which Executive’s employment terminates.
(i) “Disabled"/“Disability” has the meaning given it in the Company’s long-term disability
plan. Executive’s employment shall be deemed to be terminated for Disability on the date on which
Executive is entitled to receive long-term disability compensation pursuant to such long-term
disability plan.
(j) “End Date” has the meaning set forth in Section 1 of the Agreement.
(k) “ESP” means the Company’s Executive Savings Plan.
(l) “GDCP” means the Company’s General Deferred Compensation Plan, or, if the General Deferred
Compensation Plan is no longer maintained by the Company, a nonqualified deferred compensation plan
(other than the ESP) or arrangement the terms of which are not less favorable to Executive than the
terms of the General Deferred Compensation Plan as in effect on the Effective Date.
(m) “Incapacity” means a disability (other than Disability within the meaning of (i) above) or
other impairment of health that renders Executive unable to perform his duties (either with or
without reasonable accommodation) to the reasonable satisfaction of the Committee.
(n) “LRPIP” has the meaning set forth in Section 3(c) of the Agreement.
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(o) “MIP” has the meaning set forth in Section 3(c) of the Agreement..
(p) “Section 409A” means Section 409A of the Code.
(q) “Standstill Period” means the period commencing on the date of a Change of Control and
continuing until the close of business on the earlier of the day immediately preceding the End Date
or the last business day of the 24th calendar month following such Change of Control.
(r) “Stock” means the common stock, $1.00 par value, of the Company.
(s) “Stock Incentive Plan” has the meaning set forth in Section 3(c) of the Agreement.
(t) “Subsidiary” means any corporation in which the Company owns, directly or indirectly, 50%
or more of the total combined voting power of all classes of stock.
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EXHIBIT B
Definition of “Change of Control”
“Change of Control” shall mean the occurrence of any one of the following events:
(a) there occurs a change of control of the Company of a nature that would be required to be
reported in response to Item 5.01 of the Current Report on Form 8-K (as amended in 2004) pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) or in any other
filing under the Exchange Act; provided, however, that no transaction shall be deemed to be a
Change of Control (i) if the person or each member of a group of persons acquiring control is
excluded from the definition of the term “Person” hereunder or (ii) unless the Committee shall
otherwise determine prior to such occurrence, if Executive or an Executive Related Party is the
Person or a member of a group constituting the Person acquiring control; or
(b) any Person other than the Company, any wholly-owned subsidiary of the Company, or any
employee benefit plan of the Company or such a subsidiary becomes the owner of 20% or more of the
Company’s Common Stock and thereafter individuals who were not directors of the Company prior to
the date such Person became a 20% owner are elected as directors pursuant to an arrangement or
understanding with, or upon the request of or nomination by, such Person and constitute at least
1/4 of the Company’s Board of Directors; provided, however, that unless the Committee shall
otherwise determine prior to the acquisition of such 20% ownership, such acquisition of ownership
shall not constitute a Change of Control if Executive or an Executive Related Party is the Person
or a member of a group constituting the Person acquiring such ownership; or
(c) there occurs any solicitation or series of solicitations of proxies by or on behalf of any
Person other than the Company’s Board of Directors and thereafter individuals who were not
directors of the Company prior to the commencement of such solicitation or series of solicitations
are elected as directors pursuant to an arrangement or understanding with, or upon the request of
or nomination by, such Person and constitute at least 1/4 of the Company’s Board of Directors; or
(d) the Company executes an agreement of acquisition, merger or consolidation which
contemplates that (i) after the effective date provided for in the agreement, all or substantially
all of the business and/or assets of the Company shall be owned, leased or otherwise controlled by
another Person and (ii) individuals who are directors of the Company when such agreement is
executed shall not constitute a majority of the board of directors of the survivor or successor
entity immediately after the effective date provided for in such agreement; provided, however, that
unless otherwise determined by the Committee, no transaction shall constitute a Change of Control
if, immediately after such transaction, Executive or any Executive Related Party shall own equity
securities of any surviving corporation (“Surviving Entity”) having a fair value as a percentage of
the fair value of the equity securities of such Surviving Entity greater than 125% of the fair
value of the equity securities of the Company owned by Executive and any Executive Related Party
immediately prior to such transaction, expressed as a percentage of the fair value of all equity
securities of the Company immediately prior to such transaction (for purposes of this paragraph
ownership of equity securities shall be determined in the same manner as
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ownership of Common Stock); and provided, further, that, for purposes of this paragraph (d),
if such agreement requires as a condition precedent approval by the Company’s shareholders of the
agreement or transaction, a Change of Control shall not be deemed to have taken place unless and
until such approval is secured (but upon any such approval, a Change of Control shall be deemed to
have occurred on the date of execution of such agreement).
In addition, for purposes of this Exhibit B the following terms have the meanings set forth
below:
“Common Stock” shall mean the then outstanding Common Stock of the Company plus, for purposes
of determining the stock ownership of any Person, the number of unissued shares of Common Stock
which such Person has the right to acquire (whether such right is exercisable immediately or only
after the passage of time) upon the exercise of conversion rights, exchange rights, warrants or
options or otherwise. Notwithstanding the foregoing, the term Common Stock shall not include
shares of Preferred Stock or convertible debt or options or warrants to acquire shares of Common
Stock (including any shares of Common Stock issued or issuable upon the conversion or exercise
thereof) to the extent that the Board of Directors of the Company shall expressly so determine in
any future transaction or transactions.
A Person shall be deemed to be the “owner” of any Common Stock:
(i) of which such Person would be the “beneficial owner,” as such term is defined in
Rule 13d-3 promulgated by the Securities and Exchange Commission (the “Commission”) under
the Exchange Act, as in effect on March 1, 1989; or
(ii) of which such Person would be the “beneficial owner” for purposes of Section 16 of
the Exchange Act and the rules of the Commission promulgated thereunder, as in effect on
March 1, 1989; or
(iii) which such Person or any of its affiliates or associates (as such terms are
defined in Rule 12b-2 promulgated by the Commission under the Exchange Act, as in effect on
March 1, 1989), has the right to acquire (whether such right is exercisable immediately or
only after the passage of time) pursuant to any agreement, arrangement or understanding or
upon the exercise of conversion rights, exchange rights, warrants or options or otherwise.
“Person” shall have the meaning used in Section 13(d) of the Exchange Act, as in effect on
March 1, 1989.
An “Executive Related Party” shall mean any affiliate or associate of Executive other than the
Company or a majority-owned subsidiary of the Company. The terms “affiliate” and “associate” shall
have the meanings ascribed thereto in Rule 12b-2 under the Exchange Act (the term “registrant” in
the definition of “associate” meaning, in this case, the Company).
B-2
EXHIBIT C
Change of Control Benefits
C.1. Benefits Upon a Change of Control Termination.
(a) The Company shall pay the following to Executive in a lump sum, within thirty (30) days
following a Change of Control Termination or on such delayed basis as may be necessary to comply
with Section 409A: an amount equal to (A) two times his Base Salary for one year at the rate in
effect immediately prior to the Date of Termination or the Change of Control, whichever is higher,
plus (B) the accrued and unpaid portion of his Base Salary through the Date of Termination, subject
to the following. If Executive is eligible for long-term disability compensation benefits under
the Company’s long-term disability plan, the amount payable under (A) shall be reduced by the
annual long-term disability compensation benefit for which Executive is eligible under such plan
for the two-year period over which the amount payable under (A) is measured. If for any period
Executive receives long-term disability compensation payments under a long-term disability plan of
the Company as well as payments under the first sentence of this subsection (a), and if the sum of
such payments (the “combined Change of Control/disability benefit”) exceeds the payment for such
period to which Executive is entitled under the first sentence of this subsection (a) (determined
without regard to the second sentence of this subsection (a)), he shall promptly pay such excess in
reimbursement to the Company; provided, that in no event shall application of this sentence result
in reduction of Executive’s combined Change of Control/disability benefit below the level of
long-term disability compensation payments to which Executive is entitled under the long-term
disability plan or plans of the Company.
(b) Until the second anniversary of the Date of Termination, the Company shall maintain in
full force and effect for the continued benefit of Executive and his family all life insurance and
medical insurance plans and programs in which Executive was entitled to participate immediately
prior to the Change of Control, provided, that Executive’s continued participation is possible
under the general terms and provisions of such plans and programs. In the event that Executive is
ineligible to participate in such plans or programs, the Company shall arrange upon comparable
terms to provide Executive with benefits substantially similar to those which he is entitled to
receive under such plans and programs. Notwithstanding the foregoing, the Company’s obligations
hereunder with respect to life or medical coverage or benefits shall be deemed satisfied to the
extent (but only to the extent) of any such coverage or benefits provided by another employer.
(c) For a period of two years after the Date of Termination, the Company shall continue to
provide to Executive an automobile allowance on the same basis as it was providing such allowance
immediately prior to the Change of Control.
C.2. Incentive Benefits Upon a Change of Control. Within thirty (30) days following a
Change of Control, whether or not Executive’s employment has terminated or been terminated, the
Company shall pay to Executive, in a lump sum, the sum of (i) and (ii), where:
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(i) is the sum of (A) the “Target Award” under the Company’s Management Incentive Plan
or any other annual incentive plan which is applicable to Executive for the fiscal year in
which the Change of Control occurs, plus (B) an amount equal to such Target Award prorated
for the period of active employment during such fiscal year through the Change of Control;
and
(ii) the sum of (A) for Performance Cycles not completed prior to the Change of
Control, an amount with respect to each such cycle equal to the maximum Award under LRPIP
specified for Executive for such cycle, plus (B) any unpaid amounts owing with respect to
cycles completed prior to the Change of Control.
C.3. Gross-Up Payment. Payments under Section C.1. and Section C.2. of this Exhibit
shall be made without regard to whether the deductibility of such payments (or any other payments
or benefits to or for the benefit of Executive) would be limited or precluded by Section 280G of
the Code (“Section 280G”) and without regard to whether such payments (or any other payments or
benefits) would subject Executive to the federal excise tax levied on certain “excess parachute
payments” under Section 4999 of the Code (the “Excise Tax”). If any portion of the payments or
benefits to or for the benefit of Executive (including, but not limited to, payments and benefits
under this Agreement but determined without regard to this paragraph) constitutes an “excess
parachute payment” within the meaning of Section 280G (the aggregate of such payments being
hereinafter referred to as the “Excess Parachute Payments”), the Company shall promptly pay to
Executive an additional amount (the “gross-up payment”) that after reduction for all taxes
(including but not limited to the Excise Tax) with respect to such gross-up payment equals the
Excise Tax with respect to the Excess Parachute Payments; provided, that to the extent any gross-up
payment would be considered “deferred compensation” for purposes of Section 409A of the Code, the
manner and time of payment, and the provisions of this Section C.3, shall be adjusted to the extent
necessary (but only to the extent necessary) to comply with the requirements of Section 409A with
respect to such payment so that the payment does not give rise to the interest or additional tax
amounts described at Section 409A(a)(1)(B) or Section 409A(b)(4) of the Code (the “Section 409A
penalties”); and further provided, that if, notwithstanding the immediately preceding proviso, the
gross-up payment cannot be made to conform to the requirements of Section 409A of the Code, the
amount of the gross-up payment shall be determined without regard to any gross-up for the Section
409A penalties. The determination as to whether Executive’s payments and benefits include Excess
Parachute Payments and, if so, the amount of such payments, the amount of any Excise Tax owed with
respect thereto, and the amount of any gross-up payment shall be made at the Company’s expense by
PricewaterhouseCoopers LLP or by such other certified public accounting firm as the Committee may
designate prior to a Change of Control (the “accounting firm”). Notwithstanding the foregoing, if
the Internal Revenue Service shall assert an Excise Tax liability that is higher than the Excise
Tax (if any) determined by the accounting firm, the Company shall promptly augment the gross-up
payment to address such higher Excise Tax liability.
C.4. Other Benefits. In addition to the amounts described in Sections C.1. and C.2.,
and C.3., Executive or his legal representative shall be entitled to his Stock Incentive Plan
benefits, if any, under Section 3(b) (Existing Awards) and Section 3(c) (New Stock Awards), and to
the
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payment of his vested benefits under the plans described in Section 3(f) (Qualified Plans;
Other Deferred Compensation Plans).
C.5. Noncompetition; No Mitigation of Damages; etc.
(a) Noncompetition. Upon a Change of Control, any agreement by Executive not to
engage in competition with the Company subsequent to the termination of his employment, whether
contained in an employment agreement or other agreement, shall no longer be effective.
(b) No Duty to Mitigate Damages. Executive’s benefits under this Exhibit C shall be
considered severance pay in consideration of his past service and his continued service from the
date of this Agreement, and his entitlement thereto shall neither be governed by any duty to
mitigate his damages by seeking further employment nor offset by any compensation which he may
receive from future employment.
(c) Legal Fees and Expenses. The Company shall pay all legal fees and expenses,
including but not limited to counsel fees, stenographer fees, printing costs, etc. reasonably
incurred by Executive in contesting or disputing that the termination of his employment during a
Standstill Period is for Cause or other than for good reason (as defined in the definition of
Change of Control Termination) or obtaining any right or benefit to which Executive is entitled
under this Agreement following a Change of Control. Any amount payable under this Agreement that
is not paid when due shall accrue interest at the prime rate as from time to time in effect at Bank
of America, or its successor, until paid in full.
(d) Notice of Termination. During a Standstill Period, Executive’s employment may be
terminated by the Company only upon thirty (30) days’ written notice to Executive.
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